![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/06\/Bitcoin-BTC-BTCUSD-8-860x512.png\")
<\/p>\nBitcoin has been struck by the bears for its third consecutive week. At the time of writing, BTC has lost two critical support zones at $35,000 and $32,000. The first cryptocurrency by market cap trades at $31,987 with a 10.5% correction in the daily chart.<\/p>\n
<\/p>\n
The general sentiment in the market seems bearish, as BTC failed to gain a strong foothold on the high area around current levels. A report by Arcane Research concluded the recent correction follows a week with low exchange activity, a dropped in on-chain activity, and “futures premiums have almost gone”.<\/p>\n
The research estimates that on-chain activity has descended by around 69% since the beginning of May and the end of April. As consequence, BTC network fees also declined by almost 93%, as seen in the chart below.<\/p>\n
![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/03\/AD2_728x90.gif\")
\n![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/06\/Bitcoin-BTC-BTCUSD-8.jpg\")
<\/p>\n
The average daily transaction on Bitcoin’s network has gone from $62 in April to $4.38 at the beginning of June. At the same time, the 7-day average mempool transaction has reached its lowest levels since April 2020, as Arcane Research determined.<\/p>\n
This has coincided with the mining sector increasing their BTC sales. After China placed new limitations on the sector for certain BTC mining activities at a grand scale, some miners were forced to relocate their operations. Therefore, seems logical that they sold part of their holding to obtain liquidity for expenses.<\/p>\n
Lex Moskovski, CIO at Moskovski Capital, said that around 8,545 BTC left miners’ wallets in the last 4 days. The increase in selling pressure has contributed to the recent crash.<\/p>\n
![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/06\/Bitcoin-BTC-BTCUSD-9-860x484.jpg\")
<\/p>\n
Where some see fear, mayhem, and disarray, others see a chance to accumulate. Data from Glassnode suggest that the total Bitcoin supply held by long-term holders has been on a rise after reaching a plateau during March 2021.<\/p>\n
![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/06\/Bitcoin-BTC-BTCUSD-10-860x484.jpg\")
<\/p>\n
As seen in the chart below, the rise in these metrics went parabolic as of mid-May when BTC’s price took its worst hit. These investors bought more than all the BTC supply sold by short-term investors. Analyst William Clemente believes this number to be around 217,194 BTC. Clemente said:<\/p>\n
\nSelling from short-term holders had been offsetting buying from long-term, but now long-term holders buying is offsetting short-term hodlers selling.<\/p>\n<\/blockquote>\n
Further data recorded by Glassnode indicates that 744,000 BTC have been withdrawn from exchange platforms into cold wallets since March 2020, when BTC’s price dropped to $3,000.<\/p>\n
During May and part of June 160.700 BTC of this supply has returned to the market. Although an important increase, it only represents 22% of the overall supply that has gone cold. Analyst Checkmate believes this sell-off is a change in conviction by a portion of the market.<\/p>\n
The fact that long-term holders have returned to accumulate Bitcoin it’s a bullish sign, but the analyst believes there could be similarities between this behavior and an accumulation period in the 2018 bear market.<\/p>\n
As seen in the fractal below, after a prologue distribution in early 2021, long-term holders can continue to accumulate while the price moves sideways or trends downwards. The analyst added:<\/p>\n
\nThis fractal describes the inflection point where LTHs stop spending, start re-accumulating and hodling what are now considered cheap coins.<\/p>\n<\/blockquote>\n
![](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2021\/06\/BTC-BTCUSD-1-860x483.png\")